The U.S. Commerce Department's first look at the 3rd quarter economy shows an economy that has slowed markedly. The overall Gross Domestic Product (GDP) figure for the period has the economy growing at 2.7 percent, less than half the second quarters 5.6 percent annual rate. The GDP figures reflect the total output of goods and services produced in the U.S.
The 2.7 percent figure, if it holds up in subsequent revisions, will represent the weakest quarterly growth since the 2nd quarter of 1999, and is well below the 3.4 percent consensus figure analysts had predicted.
One of the chief factors in the slowdown was a drop in business investment to 6.9 percent, well below the scorching 14.6 percent rate of increase in the second quarter. Also dominating the index was government spending, which checked in at 10.1 percent, well off the 17.2 percent rate in the second quarter.
Consumer spending did tick up slightly in the third quarter, registering a 4.5 percent rate compared 3.1 percent in the second quarter, but that figure was still down from the first quarter's remarkable 7.6 percent milestone.
Latest GDP Figures at a Glance
|3Q 1999||4Q 1999||1Q 2000||2Q 2000||3Q 2000|
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